Luxury Retailer SSI Group Posts P476 Million Net Loss in 1H 2020
The SSI Group reported a net loss of P476 million during the firt six months of 2020, a full 180-degree turn from its P346 million net income during the same period last year.
The specialty retailer said the net loss was driven primarily by a 49 percent decline in sales during the first half of the year to P5.02 billion due to the closure of nearly all of its stores during the government-imposed lockdown from mid-March to mid-May.
The company reopened almost all of its stores on June 1 with new safety precautions in place and said that it has since seen “steady weekly sales increases.”
SSI’s ecommerce business has also seen significant growth, with sales increasing 375 percent in the first six months of the year.
The group operates the following ecommerce sites: bananarepublic.com.ph; beautybar.com.ph; dunelondon.ph; gap.com.ph; lacoste.com.ph; lush.com.ph; payless.ph; superga.ph; zara.com/ph; and marksandspencer.com.ph.
SSI also has a food business, owning the local franchise of burger restaurant Shake Shack as well as several Salad Stop! Branches. The company said both brands have since enjoyed strong demand from delivery and take-out orders.
“The Group has reduced capex for 2020 as we focus on managing our business prudently during these unprecedented times,” said SSI President Anton Huang. “I am optimistic with respect to the steady increases we have seen in brick and mortar sales and that we are ready to compete and operate under the ‘new normal.’ We are also focused on building out what is already the most diverse ecommerce presence amongst local specialty retailers, into a world class ecommerce portfolio.”
Embracing the continued growth of ecommerce, SSI said it is launching an online marketplace “that will carry a range of brands from the Group’s portfolio as well as other brands and products to complement the marketplace’s online offerings” in September.
“This e-commerce site will be unique in that it will carry a wide variety of brands from luxury, to casual and fast fashion, home, personal care products and food on one premium marketplace,” Huang said.
SSI is the country’s largest specialty retailer, with nearly 100 brands across different categories (apparel, accessories, footwear, home and personal care), and over 500 stores. SSI’s portfolio of brands includes some of the world’s most well-known fashion houses such as Calvin Klein, Lacoste, Prada, Zara, Tory Burch, Massimo Dutti Buberry, Givenchy, and Michael Kors.